BP’s compiled data from last year has revealed that global energy consumption has slowed further, with the mix of energy sources shifting towards lower-carbon fuels.
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Image from BP. |
In the UK giant’s 65th edition of the BP Statistical Review of World Energy, BP found that global primary energy consumption increased by just 1% in 2015, similar to growth in 2014 (+1.1%), but much slower than the 10-year average of 1.9% a year.
This slow growth reflected continued weakness in the global economy and lower growth in Chinese energy consumption as the country shifts from an industrial to a service-driven economy, the report disclosed.
The report also showed that in 2015, oil remained the world’s leading fuel, accounting for 32.9% of global energy consumption, and gaining market share for the first time since 1999. Dated Brent averaged US$52.39/bbl in 2015, a decline of $46.56/bbl from the 2014 level and the lowest annual average since 2004.
Globally, natural gas accounted for 23.8% of primary energy consumption. World natural gas consumption grew by 1.7%, a significant acceleration from the very weak growth (+0.6%) seen in 2014 but still below the 10-year average of 2.3%.
Global natural gas production grew by 2.2%, more rapidly than consumption but below its 10-year average of 2.4%. Growth was above average in North America, Africa, and Asia Pacific. The US (+5.4%) recorded the largest growth increment, with significant increases also in Iran (+5.7%) and Norway (+7.7%). EU production fell sharply (-8%), with the Netherlands (-22.8%) recording the world’s largest decline. Large volumetric declines were also seen in Russia (-1.5%) and Yemen (-71.5%).
“As this edition of the Stats Review clearly demonstrates, the world of energy is again going through a period of profound change. But this is nothing new for our industry; over the past 65 years the Review has revealed continual change in the global energy landscape,” Bob Dudley, BP Group chief executive said at the launch on 8 June. “Our task as an industry is to take the steps necessary to ensure our resilience in the near term, while continuing to invest to meet the energy needs of the future.”
Consumption
BP’s report reported a 1.9% or 1.9 MMb/d growth, nearly double the recent historical average (+1%) and significantly stronger than the increase of 1.1 MMb/d seen in 2014.
The spike was driven by OECD countries, where consumption increased by 510,000 b/d or +1.1%, compared with an average decline of 1.1% over the past decade.
Growth was well above recent historical averages in the US at a jump of 1.6%, or 290,000 b/d; and the EU’s increase of 1.5%, or 200,000 b/d.
Energy consumption in China grew 1.5% in 2015, the slowest rate in almost 20 years. Despite this, China remained the world’s largest growth market for energy for the 15th consecutive year.
Japan, however, recorded the largest decline in oil consumption of 3.9%, or 160,000 b/d.
Production
Global oil production increased even more rapidly than consumption for a second consecutive year, rising by 2.8 MMb/d or 3.2%, the strongest growth since 2004.
Although emerging economies continued to dominate the growth in global energy consumption, growth in these countries in 2015 (at 1.6%) was again well below its 10-year average rate. Emerging economies now account for 58.1% of global energy consumption, BP revealed.
Production in Iraq and Saudi Arabia rose to record levels, at 750,000 b/d and 510,000 b/d, respectively, driving OPEC production up by 1.6 MMb/d to 38.2 MMb/d, exceeding the previous record reached in 2012.
Production outside OPEC slowed from last year’s record growth but still grew by 1.3 MMb/d, BP reported.
The US, at 1 MMb/d, had the world’s largest annual growth increment and remained the world’s largest oil producer.
Elsewhere, production growth in Brazil at 180,000 b/d, Russia at 140,000 b/d, the UK and Canada at 110,000 b/d each, was partly offset by declines in Mexico with a decrease of 200,000 b/d, Yemen with a decrease of 100,000 b/d, and elsewhere.
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